Herman Miller no 5

Describe Herman Millers strategy. Is there evidence it has produced a competitive advantage and good financial performance Explain Herman Millers has produce competitive advantages and good financial performance by performing key pieces of activities as their strategies components as follows PRIMARY ACTIVITIES Supply Chain Management and Operation Having agreements with qualified suppliers to deliver parts to Herman Miller production facilities in a just-in-time process. The company outsources component parts to suppliers in order to reduce the fix production cost. Herman Miller uses lean manufacturing techniques to gain efficiencies, cost savings, lower inventories, higher inventory turnover, greater on-time shipments, higher quality, and better safety performance. To speed up delivery time to its customer, Herman Miller mainly used the different manufacturing location operations in many countries. the company uses cross-functional product development teams to facilitate internal innovation, integrate activities across departments, increase the speed of new product development, enhance the commercialization of new products, and provide strategic flexibility. It engages in supply partnerships, outsourcing component production with strategic suppliers to limit fixed production costs, increase profitability, and enable the company to retain control over production processes that have the greatest potential to yield competitive advantages. Sales Marketing and Customer Service All productions are made of recyclable materials and renewable energy. For the builders who used its production will earn points of Leadership in Energy and Environmental Design certification. Herman Miller has followed product development and market development strategies with clear emphasis on differentiating its product. It operates in the upper end office furniture market in over 100 countries, although only 10 of its profits were from non-North American countries. The efforts of its...

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...HERMANMILLER
1. Describe Herman Miller’s strategy. Is there evidence it has produced a competitive advantage and good financial performance? Explain.
They focus on a growth strategy, through innovative products and production processes. Reinvention and renewal. They survived the Great Depression and multiple recessions, recovered from the dot-com bust and were able to continue expanding overseas. They adapted to save the company, by introducing new designs. In 1996, HermanMiller began an aggressive drive to reinvent its operations and established a fruitful relationship with the Toyota Supplier Support Center. Unique to the office furniture industry, the relationship enabled the company to adopt and implement world-class, lean manufacturing processes based on the Toyota Production System principles. Through the HermanMiller Production System (HMPS), the company dramatically reduced manufacturing square footage and inventories, cut lead times for standard product from 8 weeks to as little as 10 days, and significantly grew sales and profitability. Another component of the HMPS lean initiative focuses on the company’s people and their development, complementing Herman Miller’s long history of employee participation. HermanMiller believes its success in achieving operational excellence depends on the motivation and thinking...

...CASE ANALYSIS
Herman Miller’s Overall Strategy: HermanMiller Inc. focuses on growth, by introducing innovative products. The company believes that in order to achieve operational excellence, the company needs to focus on employees’ motivation and problem solving process. HermanMiller concentrates on producing high quality products. The company is trying to reduce fixed manufacturing cost by outsourcing with their strategic suppliers, which helps controlling the company’s overall cost structure and accomplish a competitive advantage.
The survival of HermanMiller when facing recession came from a flexible business strategy and plan. The company did well in developing new products and designs to broaden its activities. HermanMiller also tried to strengthen existing relationships with strategic suppliers. This strategy was important because it enabled HermanMiller Inc. to achieve world-class status in its industry. HermanMiller reduced manufacturing cost, inventory costs, and time saving due to high standard production. Those changes positively impacted HermanMiller sales.
In order to meet the ever increasing demands of the business, it is important that the employees are equipped with such capabilities that enable them to do so. For this purpose, the...

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CASE 22 HERMANMILLER INC.: THE REINVENTION AND RENEWAL OF AN ICONIC MANUFACTURER OF OFFICE FURNITURE
For
MGMT 599
Dr. E. Escobedo
By
DeAngela Dixon
August 15, 2013
HermanMiller, Inc. is primarily concentrated in the business and institutional market. HermanMiller is one of the leading players in the US office furniture industry with a 12% market share. Over the last several years, the entire industry has experienced significant declines in sales due to poor macroeconomic conditions. However, HermanMiller has managed to outperform most of its competitors in terms of profitability, illustrated through strong operating margins and return on sales. HermanMiller has a strong reputation for high quality, innovative products, strong customer service, high customization, and reliability. This strong brand equity enables the company to leverage its brand strength across different market segments, leading to extended customer reach I have analyzed the company and the industry, and have chosen the best strategy to expand customer reach, and increase sales revenue. My analysis chosen will consist of a three-year implementation plan that will bolster sales revenue and expand the company’s customer base.
HermanMiller Inc. internal environment brings to light the following...

...strengths and weaknesses. What are the short-term and long-term implications of its internal environmental conditions?
HermanMiller produced its first office furniture in 1942 by a man Gilbert Rhode, he died 2 years after the design was made and De Pree had to find a new designer then he hired George Nelson as Herman’s first designer.
Hermanmiller is a 1.3 billion dollar manufacturer that produces office furniture. It is one of only four organizations and the only non-high technology that was selected for Fortune magazines “100 Best Companies to Work For.” HermanMiller has a rich legacy, they go back to 1905 and the Star Furniture Company which was a manufacture of traditional bedroom suites. In 1909 it was renamed Michigan Star Furniture and hire D.J Pree as a clerk then he became president. His father in law bought majority of the shares and in honor of that he named the company HermanMiller. This is where strength comes in because they are loyal to their employees and De Pree was committed to treating all of his employee’s individuals. They are lead innovators; they have to make sure that they are keeping up with what everyone expects from them which requires intense research. Early in the history of HermanMiller, it survived the Great Depression, which is saying a lot considering that the Depression was the biggest...

...﻿Question 1: Herman Miller’s Strategies: evidence on its competitive advantage and good financial performance
1. Corporate Strategy: Diversified Strategy
From the headquarters of HermanMiller Inc., Curt Pullen talks amid the unmistakable pounding sounds and commotion associated with a construction work site about his company's plan to rebound from the recession. Pullen, the firm's executive vice president and president of North America, says the workers are installing new lower-height HermanMiller workstations designed to accommodate a growing trend in offices toward more open, collaborative environments. The new product, called Canvas, is part of the company's market-shift strategy after the demand for office furniture fell hard during the economic downturn. The plan also involves diversifying into the health care and academic furniture markets and more emphasis on emerging economies. The plan appears to be paying off. For the first time in nearly four years the company reported two consecutive quarters of double-digit percentage sales growth after releasing its second-quarter earnings statement on Dec 15th. Orders in the second quarter rose 34% to $462 million. CEO Brian Walker noted the company's expanded market reach as a contributing factor to growth. Significant increases occurred in international markets where sales rose 33%.
In 2010 the company acquired UK-based...

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1. HermanMiller, Inc employs a broad differentiation strategy. The essence of a broad differentiation strategy is to offer a unique product or service attributes that a wide range of buyers find appealing and worth paying for, and HermanMiller (HMI) does just that through innovative products and processes. Unlike most firms, especially those in mature industries and most of its office furniture rivals, HermanMiller pursued a path distinctively marked by reinvention and renewal. The company obtained a competitive advantage by studying buyers’ needs and behaviors carefully in order to learn what buyers think has value and what they are willing to pay for. Even in downturns, it invested in millions of dollars in research and development. This not only allowed a wider product variety, but it improved product quality as well and in turn enhanced differentiation. We see throughout the case the results of Herman Miller’s high-quality inputs and innovation in the launch of award-winning product after product. Some of the inputs and superior product features include the physical and functional features of the furniture, first-on-the-market victories, and successful marketing and brand management activities. The Ergon Chair is a good example as it was the first design based on scientific observation and ergonomic principles. And with the help of designers such as...

...Section 1: Problem Statement
When Mike Volkema, CEO of HermanMiller, abruptly attempted to appoint Gary Van Spronsen to executive vice president of offer development and marketing, Volkema was hesitant to get involved. Since 1992, Van Spronsen had worked feverishly to build a leader in the office furniture industry in the HermanMiller subsidiary SQA. Not only did Van Spronsen create the traction that prompted better customer service, a tailored product line and design process, but he also transformed the faltering subsidiary from a refurbishing company, into a position leader that develops their own products. Now, Van Spronsen was suddenly being called on to make the same impact on the second largest producer of office furniture in the United States at the corporate headquarters of HermanMiller. The major question presented is should Van Spronsen take the leap to HermanMiller corporate and put the future of the SQA subsidiary in jeopardy?
Section 2: Issues
Over the years, HermanMiller has adapted and changed to meet workplace demands. In the early years, HermanMiller successful implemented a plan to enrich their employee’s workplace experiences. The company recognized and embraced diversity, built a strong corporate culture, and developed a strong reputation of corporate social responsibility....